Free cash flow generation is robust, reaching a 46.2% margin in 2026Q4, supported by an operating cash flow to net income ratio of 2.35.
| Metric | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 | Apr'04 | Apr'03 | Apr'02 | Apr'01 | Apr'00 | Apr'99 | Apr'98 | Apr'97 |
|---|
| Cash from Operations | 2.07B | 1.51B | 1.69B | 1.11B | 1.21B | 1.33B | 1.06B | 1.34B | 1.48B | 986M | 974M | 1.27B | 1.35B | 1.39B | 1.46B | 1.35B | 975M | 889.23M | 1.01B | 864.46M | 554.28M | 462.12M | 310.89M | 195.25M | 143.89M | 218.35M | 118.08M | 45.95M | 22.73M | 6.27M |
| Operating CF Margin % | 29.85% | 22.92% | 26.88% | 17.4% | 19.17% | 23.21% | 19.59% | 21.82% | 25% | 17.87% | 17.56% | 20.71% | 21.34% | 21.89% | 23.46% | 26.28% | 24.8% | 26.1% | 30.54% | 30.83% | 26.82% | 28.92% | 26.56% | 21.89% | 18.02% | 21.7% | 20.38% | 15.88% | 13.68% | 6.72% |
| Operating CF Growth % | 37.25% | -10.62% | 52.21% | -8.59% | -9.15% | 25.75% | -20.95% | -9.27% | 49.9% | 1.23% | -23.19% | -6.04% | -2.65% | -5.22% | 8.64% | 38.08% | 9.65% | -11.86% | 16.71% | 55.96% | 19.94% | 48.64% | 59.23% | 35.69% | -34.1% | 84.92% | 156.99% | 102.18% | 262.51% | 78.96% |
| Net Income | 1.28B | 1.19B | 986M | 1.27B | 937M | 730M | 819M | 1.17B | 76M | 509M | 229M | 559.9M | 637.5M | 505.3M | 605.4M | 673.1M | 400.4M | 86.55M | 309.74M | 297.74M | 266.45M | 225.75M | 152.09M | 76.47M | 3.03M | 74.89M | 73.79M | 35.61M | 20.96M | 250K |
| Depreciation & Amortization | 152M | 243M | 255M | 248M | 194M | 207M | 193M | 197M | 198M | 226M | 279M | 307.2M | 334.1M | 344.6M | 293.1M | 165.6M | 166M | 170.54M | 144.18M | 110.83M | 81.8M | 65.62M | 59.45M | 57.41M | 65.29M | 42.26M | 15.71M | 8.15M | 5.55M | 2.87M |
| Stock-Based Compensation | 382M | 386M | 357M | 312M | 245M | 197M | 153M | 158M | 161M | 195M | 260M | 259.3M | 273M | 276.6M | 257.6M | 175.2M | 159.8M | 140.75M | 147.96M | 163.03M | 13.29M | 8.15M | 3.9M | 3.64M | 7.2M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 106M | -100M | 53M | -606M | -144M | -6M | -17M | -3M | 277M | 90M | -113M | -2.7M | -76M | -76.6M | 107.5M | 128.5M | -11.3M | -108.37M | -53.03M | -19.52M | 1.54M | 6.32M | -21.45M | -18.34M | -4.59M | -35.47M | -11.61M | -5.08M | -1.75M | -2.79M |
| Other Non-Cash Items | 174M | 41M | 32M | -15M | 1M | -80M | 14M | -71M | -245M | -16M | 19M | -20.6M | -25.2M | 57.9M | -131.6M | -86.1M | 51M | 64.93M | -3.24M | -84.23M | 7M | 3.32M | 4.33M | -124K | 23.52M | 43.35M | 3.02M | 2.46M | 445K | 10.45M |
| Working Capital Changes | -23M | -250M | 2M | -106M | -22M | 285M | -102M | -109M | 1.01B | -18M | 300M | 165M | 206.2M | 278.5M | 330.6M | 290M | 209.1M | 534.83M | 463.27M | 396.6M | 184.2M | 152.95M | 112.57M | 76.19M | 49.45M | 93.32M | 37.18M | 4.82M | -2.48M | -4.5M |
| Change in Receivables | -36M | -219M | -33M | 260M | -313M | 62M | 238M | -185M | -272M | 81M | -16M | 74.8M | -56.6M | 23.1M | -90.4M | -262.7M | -21.3M | 128.69M | -27.74M | -175.23M | -116.82M | -103.35M | -41.63M | -3.26M | 33.05M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -12M | -1M | -18M | 37M | -90M | 31M | -14M | -9M | 37M | -65M | 49M | -24.1M | 17M | 22M | -16.5M | 4.4M | -52.1M | 9.13M | -15.38M | 9.91M | -46.25M | -15M | -9.97M | -16.25M | -6.16M | -13.68M | -12.43M | -4.93M | 1.21M | -5.09M |
| Change in Payables | 31M | -8M | 123M | -207M | 181M | -11M | -117M | -57M | 262M | 94M | -53M | 38.6M | -12.1M | 25.1M | 11.4M | 38.7M | 42.7M | -26.97M | 20.03M | 36.59M | 17.41M | 30.46M | 12M | -643K | -13.25M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -595M | 147M | -735M | -1.39B | -561M | 21M | 1.27B | 704M | -21M | -220M | 85M | -903.2M | 760.4M | -228.6M | -2.31B | -777.2M | -987.7M | -1B | 102.91M | -83.78M | -326M | -351.31M | -299.27M | -151.09M | -435.29M | -112.2M | -114.18M | -17.47M | -13.86M | -11.05M |
| Capital Expenditures | -198M | -168M | -155M | -239M | -226M | -162M | -124M | -173M | -145M | -175M | -160M | -175.3M | -221.4M | -303.3M | -407.1M | -222.7M | -135.6M | -289.66M | -188.28M | -165.83M | -132.91M | -93.57M | -48.6M | -61.27M | -284.24M | -83.69M | -40.82M | -15.47M | -7.97M | -7.12M |
| CapEx % of Revenue | 2.86% | 2.56% | 2.47% | 3.76% | 3.58% | 2.82% | 2.29% | 2.81% | 2.45% | 3.17% | 2.89% | 2.86% | 3.5% | 4.79% | 6.53% | 4.35% | 3.45% | 8.5% | 5.7% | 5.91% | 6.43% | 5.85% | 4.15% | 6.87% | 35.6% | 8.32% | 7.05% | 5.35% | 4.8% | 7.63% |
| Acquisitions | 0 | 0 | 0 | -491M | -380M | -350M | -73M | -3M | -75M | -8M | -842M | -84.6M | 0 | -106.5M | -480M | -136.5M | -1.77B | 0 | -99.39M | -131.24M | -53.75M | 0 | -6.84M | 0 | 0 | -7.17M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 15M | 70M | 0 | 59M | 18M | 378M | 96M | 4M | 209M | 6M | 105M | 1.5M | 6.8M | 4.2M | 1.6M | -1.77B | 8.2M | 336K | -793K | 24.2M | -10.92M | 9.15M | -8.89M | 0 | 0 | 0 | 2.5M | -7M | -2M | 11K |
| Cash from Financing | -2.15B | -828M | -1.34B | -1.51B | -1.02B | 444M | -1.96B | -2.63B | -986M | -1.18B | -109M | -675.2M | -3.1B | 578.9M | -343.6M | 450.9M | 219.9M | 696.6M | -662.39M | -747.26M | 42.77M | -12.1M | -54.62M | 29.25M | 230.22M | -113.24M | 53.83M | 155.5M | 6.92M | 1.66M |
| Debt Issued (Net) | -750M | 840M | 0 | -250M | 0 | 948M | -127M | -136M | -70M | -351M | 998M | 495M | -1.26B | 987.3M | 0 | 0 | 14.2M | 1.07B | 87.24M | -214.89M | 300M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -12K | -17K |
| Equity Issued (Net) | -901M | -1.04B | -900M | -742M | -600M | -167M | -1.31B | -1.99B | -621M | -613M | -890M | -1.01B | -1.68B | -590M | -457.9M | 324.2M | 197.1M | -314.1M | -789.01M | -590.25M | -256.16M | -10.98M | -54.62M | 29.25M | 36.47M | 80.51M | 53.83M | 155.5M | 6.94M | 1.68M |
| Dividends Paid | -413M | -424M | -416M | -432M | -446M | -427M | -439M | -403M | -214M | -208M | -210M | -207.4M | -202.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -950M | -1.15B | -900M | -850M | -600M | -125M | -1.41B | -2.11B | -794M | -705M | -960M | -1.17B | -1.88B | -590M | -600M | 0 | 0 | -399.98M | -903.7M | -805.71M | -488.91M | -192.9M | -136.17M | 0 | 0 | 0 | 0 | 0 | -1K | -52K |
| Other Financing | -83M | -202M | -28M | -89M | 29M | 90M | -85M | -102M | -81M | -7M | -7M | 45.8M | 43.3M | 181.6M | 114.3M | 126.7M | 8.6M | -55.1M | 39.37M | 57.89M | -1.06M | -1.12M | 0 | 0 | 193.75M | -193.75M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -673M | 840M | -413M | -1.8B | -416M | 1.87B | 335M | -616M | 497M | -424M | 946M | -369.5M | -986.1M | 1.73B | -1.21B | 1.05B | 210.8M | 557.67M | 447.4M | 27.82M | 267.71M | 101.21M | -43.01M | 73.41M | -61.17M | -7.08M | 57.73M | 183.97M | 15.79M | -3.12M |
| Free Cash Flow | 1.87B | 1.34B | 1.53B | 868M | 985M | 1.17B | 936M | 1.17B | 1.33B | 811M | 814M | 1.09B | 1.13B | 1.08B | 1.06B | 1.12B | 839.4M | 599.57M | 820.61M | 698.63M | 421.37M | 368.55M | 262.29M | 133.98M | -140.34M | 134.67M | 77.26M | 30.47M | 14.76M | -855K |
| FCF Margin % | 26.99% | 20.36% | 24.41% | 13.64% | 15.59% | 20.39% | 17.29% | 19% | 22.55% | 14.69% | 14.68% | 17.85% | 17.84% | 17.1% | 16.93% | 21.93% | 21.35% | 17.6% | 24.84% | 24.91% | 20.39% | 23.06% | 22.41% | 15.02% | -17.58% | 13.38% | 13.34% | 10.53% | 8.88% | -0.92% |
| FCF Growth % | 39.69% | -12.55% | 76.27% | -11.88% | -15.88% | 25.11% | -19.86% | -12.38% | 64.37% | -0.37% | -25.51% | -3.14% | 4.17% | 2.61% | -6.06% | 33.86% | 40% | -26.94% | 17.46% | 65.8% | 14.33% | 40.51% | 95.76% | 195.47% | -204.22% | 74.3% | 153.54% | 106.53% | 1825.73% | -9.9% |
| FCF per Share | 9.39 | 6.40 | 7.18 | 3.95 | 4.30 | 5.18 | 4.02 | 4.51 | 4.83 | 2.89 | 2.74 | 3.41 | 3.24 | 2.94 | 2.75 | 2.85 | 2.38 | 1.79 | 2.27 | 1.80 | 1.08 | 0.96 | 0.72 | 0.38 | -0.40 | 0.37 | 0.22 | 0.10 | 0.05 | -0.00 |
| FCF Conversion (FCF/Net Income) | 1.62x | 1.27x | 1.71x | 0.87x | 1.29x | 1.83x | 1.29x | 1.15x | 19.45x | 1.94x | 4.25x | 2.26x | 2.12x | 2.74x | 2.42x | 2.00x | 2.44x | 10.27x | 3.26x | 2.90x | 2.08x | 2.05x | 2.04x | 2.55x | 47.44x | 2.92x | 1.60x | 1.29x | 1.08x | 25.08x |
| Interest Paid | 58M | 53M | 59M | 65M | 67M | 57M | 50M | 0 | 0 | 44M | 43M | 33M | 35M | 22.8M | 21.4M | 22.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 285M | 412M | 357M | 386M | 398M | 338M | 276M | 0 | 0 | 102M | 161M | 97M | 58M | 46.7M | 48.2M | 27.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Hyperscaler vertical integration
As reported in recent financial filings, NetApp's operating cash flow to net income ratio reached 2.35 in 2026Q4, indicating that cash generation significantly outpaces accounting profits, largely driven by favorable working capital movements and the non-cash nature of certain operational expenses within the current reporting period.
The consistent divergence between net income and operating cash flow suggests that the company's earnings quality is supported by robust cash inflows rather than aggressive accrual accounting. Investors should monitor whether this high conversion ratio is sustainable or if it reflects temporary timing benefits in deferred revenue recognition.
Based on the provided quarterly data, free cash flow margins have demonstrated significant volatility, peaking at 46.2% in 2026Q4, which highlights the company's ability to generate substantial surplus cash relative to revenue as the business model shifts toward higher-margin software and cloud-based service offerings.
The trajectory of free cash flow appears to be strengthening, particularly when excluding the cyclical troughs observed in Q2 periods. This suggests that the underlying business model is becoming increasingly capital-light, allowing for greater cash retention even as the company continues to invest in its cloud-native data services.
According to the cash flow statements, working capital changes have been highly erratic, swinging from a $381 million outflow in 2026Q2 to a $303 million inflow in 2026Q4, reflecting the inherent seasonality and timing sensitivities of enterprise hardware sales and long-term subscription contract renewals.
These sharp fluctuations in working capital suggest that the company's cash flow is sensitive to the timing of large enterprise deals and the associated billing cycles. Analysts should interpret these swings as a reflection of operational scale rather than a fundamental deterioration in the efficiency of receivables or inventory management.
As evidenced by the historical data, NetApp consistently deploys capital toward shareholder returns, with share repurchases totaling $200 million in 2026Q4 alone, demonstrating a commitment to returning excess cash to investors while maintaining a fortress-like balance sheet with minimal reliance on external debt financing.
The company's capital allocation strategy appears focused on balancing consistent dividend payments with opportunistic share buybacks. This disciplined approach suggests management prioritizes shareholder value, though investors should monitor if future acquisition activity in the CloudOps space begins to compete with these established return priorities.
Quick answers to the most common questions about buying NTAP stock.
NetApp, Inc. (NTAP) generated $2.07B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
NetApp, Inc. (NTAP) generated $1.87B in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
NetApp, Inc. (NTAP) spent $198.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, NetApp, Inc. (NTAP) returned $413.0M to shareholders via cash dividends and spent $950.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.